Sweeping changes in the supply chain have transformed the relationship between the distribution center and the retail store. The pursuit of efficiencies and ambitious service levels has elevated the role of the DC as a competitive differentiator while online shopping has changed the role of the retail store. As the complexity of omni-channel fulfillment penetrates virtually every supply chain, organizations are striving to get DCs and stores on the same page to realize cost reductions for labor, transportation and inventory. However, this could instead require significant investment or a reimagining of the design and location of fulfillment, replenishment and value-added services.
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